Route Risk Settings may not apply to you. They provide a way of monitoring risk across individual and omnibus accounts based on the exchange credit limit for the route by consolidating the information on a route. (CQG sets up the route for you.)
This Route Risk Settings page allows you to: choose cross trade control parameters and set position limit checks.
Cross trade controls
Cross trade controls are used to allow one of two behaviors when a cross trade occurs: reject the new order that would result in a cross trade or cancel the working orders that would cause a cross trade.
Cross trade controls can also apply to omnibus accounts.
Position limit checks
Control complete FCM exposure and not only the exposure of individual accounts. This feature allows you to manage risk at the FCM level; all accounts trading through the FCM are included in position calculations. If other FCMs share your route, you can set position limits here that take into account the positions of all FCMs.
There are three possible limits for each instrument: Instrument Position Limit, Contract Position Limit, and Trade Size Limit. Each of those limits can be unlimited and limited by whatever value you enter.
These settings apply to futures, daily futures, and put/call options only.
CAST user permissions must be updated to allow you to view or change risk settings.
Note: Position limit check parameters are not available for synthetic routes or routes for groups that do not have position limit checks enabled.
To set cross trade controls
1. Go to Routes > Risk Settings.
2. Click the drop down arrow to open the cross trade control parameter menu.
3. Click Reject new or Cancel existing. Definitions of these options are on the page.
Note:
•Only LMT, STP, and STL orders are subject to cross-trade control.
•Synthetic strategy orders and synthetic strategy leg orders are eligible for cross-trade control.
•Contracts on fungible commodities are treated as independent contracts.
•Native strategies are treated as independent contracts, i.e. without considering legs.
To configure position limit checks
1. Go to Routes > Risk Settings.
2. Select the Enable Position Limit checks check box to activate the limit settings.
3. If you want open orders considered in the position limit, then select the Include working orders in position limit calculations check box.
4. If you want positions from the previous trading day considered in position limit calculations, then select the Include positions from the previous trading day check box.
5. To filter positions from the previous trading day to include only confirmed positions, select the Exclude unconfirmed positions check box.
6. If you want to omit external fills, select the Exclude positions opened by external fills check box.
7. If you would like to set default values for the instrument position, contract position, and trade size limits, enter those defaults in the Defaults for this route section. The values entered here are applied if you select default for a particular fungible instrument.
8. To set limits for a group of instruments, select the check boxes for the instruments you want to include. You can also select all check boxes by selecting the check box above the column.
9. Set the instrument, contract, and trade size limits at the top of the window. If you select limited, enter a value.
10. Click the Populate values to selected instruments button. The settings you entered are applied to the instruments that you had selected.
11. You can also apply settings line by line.
Account information includes a route risk settings notification that indicates overlapping commodities in an enabled route.
Permissions associated with this page
CAST Users > CAST Permissions > Risk Management > FCM > View Route Based Risk Settings
CAST Users > CAST Permissions > Risk Management > FCM > Modify Route Based Risk Settings